capital. Stock Management System of Mcdonald s and benefits

Save this PDF as:
 WORD  PNG  TXT  JPG

Size: px
Start display at page:

Download "capital. Stock Management System of Mcdonald s and benefits"

Transcription

1 Stock Management for Food and Beverage Department; Case of Mcdonald s Company Limited Tanchanok PRASARNSUKLAP Introduction It is acceptable that Mcdonald s is one of the most successful restaurant businesses, a part of many aspects is managing stock. The company focused on building a guest loyalty and long term relationship to make repeat orders and to use a wide range of services offered so the company need to manage stock for always having sufficiency quantity to satisfy its guests simutaneeously with avoiding wate and damage and minimizing costs. Mcdonalds convinces having too high or too low stocks takes risk because high stocks represent money lying idle when it could be put to better use, whereas low stocks could result in not being able to meet orders and satisfy customers needs. Problems of low stock Problem of high stocks 1. It may be difficult to satisfy guests demands 1. There is an increased risk of a stock item becoming obsolete. 2. It can lead to a loss of business. 2. The risk of stock losses is increased. 3. It can lead to a loss of good will. 3. The costs of storage are high. 4. Ordering needs to be frequent and 4. Stocks can tie up a company s working handling costs are higher. capital. Stock Management System of Mcdonald s and benefits Centralized Stock Management System Applying Just in Time Method for planning and forecasting a likely demand of menu items Using First in First out (FIFO) basis, materials are used in the order they are received. Daily record opening and closing stocks of key food materials, while weekly record for all other materials Holding an extra quantity of stock to meet unexpected higher standard, base on re order point system. Benefits generated from centralized stock management system: Avoiding out of stock, the accurate level of stock is simply input currently onto the system. AS a result, customers can always get what they order Avoiding too much stock, stock can be reduced automatically at the end of a promotion Stock levels are always optimum to ensure sales and the freshest products. Cost Saving, results from less watte and passes on value for guests. Time Saving, as ordering is based on the level of current stocks which is already shown on the system.

2 Decision Analysis Regarding to the case study of Mcdonald s, there is the methods that can be used to solve the problem of stock shortage and refine the stock control system in food and beverages companies. The chosen following might proper for Swissotel Le Concorde. Stock Control System JustinTime (JIT): for perishable materials Just in Time is a system of purchase only enough materials each day to produce units as actual guests demand or, as simply, means that raw materials are received just in time to got into production, and units are completed just in time to be served to guests. The benefits of using just in time systems are: Cost Reduction, budget will not be tied up but can be used elsewhere Areas, previously used to store, can be used for other more. Higher quality of product, the used material is fresher resulting in less waste and greater customer satisfaction. Reorder point (ROP): non perishable materials The reorder point is the number of units to which the supply on hand should decrease before additional orders are placed. The factors determine the reorder point are average normal consumption includes possible increase usage during purchasing progress, and the time to process on order includes delay. This system is chosen for: Reducing the risk of stockout, which can possible cause customer dissatisfaction and lost sales. Using and saving stock system Formal issuing: for perishable and nonperishable materials Requisitions are playing an important role for issuing control, whenever a product is transferred from one area to another no matter from storage to kitchen, kitchen to kitchen, or kitchen to outlet so putting requisitions in writing provides existent documentation, therefore, greater control. Daily issues can help in terms of: Maintain accuracy establish usage rates. Maintain accuracy reorder points.

3 First In, First Out (FIFO): for perishable and non perishable materials First in first out system supposes to be followed after products are issued. This means the materials are used by ranking as order, on the other hand, the least perishables are used first and the most perishable are used last. Stock then will always fresh at all time. Heading on FIFO basis can take advantages of: Minimizes loss of product quality Minimizes possible spoilage and contamination Maintains product temperature Recommendations To clearly illustrate, as we can see from 14 days forecast on the date of 23 rd September, total number of guest expectation for lunch was 430 persons and one of the lists of hot dishes on that day was Pan fried John Dori with Black Olive and Garlic Butter so on date 22 nd, the chefs suppose to stock materials adequate for 430 persons with extra 50 persons of walkin guests which includes: Perishables Nonperishables with shorter shelf lives Nonperishables with slonger shelf lives Managing stocks of perishables: the Use of Justin Time (JIT) system I have chosen the system of just in time for solving the problem of stock miss planning which might lead to the negative impacts of wasting costs of production, and compensation to guests. Even the system was already proceeded, we still need to make some different by enforcing the system for more effectiveness. For the JIT on hand, from the above example, the chefs on duty will check and order those 3 items of perishables on 22 nd September, only 1 day before the actual day, which is quite tight. But for my new JIT, the chefs on duty have to check and place order on 21 st or 2 days before the actual day. Managing stock of nonperishables: the Use of ReOrder Point (ROP) system The reorder point system was chosen to solve the problem of uncertainty of the number of guests which risks to chefs on duty, they cannot fully making menu as original and cause to guests unsatisfaction. Again, even the system was already proceeded, we still need to make some different by enforcing the systems for more effectiveness. Par stock is taken to mean the maximum quantity of an item that should be on hand after received the latest order and according to the standard of the hotel, nonperishable materials with shorter shelf lives are normally kept per stock for 1 week and review every 3 days while the longer are normally kept for 1 month and review every 15 days.

4 On account of the available ROP, the chefs on duty will check and order those items of nonperishables on 21 st September, 2 days before the actual day. However, my ROP system will add a safety cushion of 2 days so the chefs on duty suppose to check and place order on 19 th September or 4 days before the actual day. To calculate the appropriate level for reordering stock materials, as the above example, the hotel must considerate these relevant factors a) Average monthly consumption, established over a 3 to 6 months period b) Time to process on order c) Time between the placing of an order and the receiving of the goods in the hotel d) Add a safety cushion of 2 days Stock security for perishable and nonperishables: The Use of formal issuing system The formal issuing system has been chosen for solving the problem of internal transfer without permission which might bring to inaccuracy of usage rates in each kitchen and difficult to calculate the reorder points. Similar to JIT and ROP, the system was already proceeded but each chef trend to ignore the procedure due to the unawareness of the following results and unforeseen the future advantage. Moreover, they think it will be waiting time using these systems In order to let them work consistency and understand the importance of the system, we have to guide and acknowledge every chef to strictly follow the processes as habits and make these proficient system demonstrate their most effectiveness. For formal issuing of Swissotel Le Concorde, there is an internal transfer form which needs to be completed in order to correctly calculate the budgets of each kitchen. The unit where issues materials must submit the internal transfer form to the unit where the materials come from, no matter how big or small amount of the quantity, right away after received materials or at least within that day. Stock security for perishables and nonperishables : the Use of First In, First Out (FIFO) system The First In, First Out (FIFO) system is chosen for solving the problem of deterioration because missstoring or missusing in strict order which might bring to higher spoilage and higher cost of production. Likewise to formal issuing, the system was already proceeded but each chef tend to ignore so the leaders of each kitchen will be trained by systematically and can share this knowledge to colleagues and subordinate in order to prove the advantages of using systems. In addition to FIFO system, chefs have to highlight or label the expiry date on each item, right away after received and before store on shelves or keep refrigerate. The former items must be taken out of shelves, replaced by the latest ones, and out the former ones at the front lines of shelves.

5 Conclusion of decision analysis After following the systems of JIT, ROP, formal issuing, and FIFO, it clearly observed that the extent of the problem to each subcategory would be inhabited. Chefs on duty could ensure stock materials they ordered will be delivered in expected time for adequate serving to entire guests (benefits from ROP). The materials themselves could be checked using elsewhere and calculated accuracy usage rates of each kitchen (benefits from formal issuing). Guests then could get what they are expected and with its freshest (benefits from JIT). Furthermore, an error from chefs on duty was being kept in minimum level, they worked much functionally, and could make use of each material for its utmost utility which brought to the results of less water. As you can see, these systems could solve the problem of stock shortage of Swissohotel Le Concorde, the hotel could always provide sufficient products to meet its thoroughly guests which made them utmost satisfied. The hotel therefore benefits from cost reduction, organized work flow in the kitchen, guests satisfaction and brand loyalty. References Paul R. Ditter and J. Desmond Keefe III, Principles of food, beverage, and labor cost controls, ninth edition The Orientation Professional Thai Chef Programme, Cost Control: the establishment of reordering stock levels (minimum and maximum), 2009 Mcdonald s case study: Managing stock to meet customer needs, Operations: Stock ontrol, Business Studies theory/studentand Teacher resources Food manufacture: Just In Time Inventory management system: Basic inventory decision and EOQ. Develop and evaluate supply change management systemsadvanced diploma in logistics and management Stock Control and Inventory: Stock Control Methods, Business linkpractical advice for business

Executive Chef s Roles and Responsibilities

Executive Chef s Roles and Responsibilities Executive Chef s Roles and Responsibilities An executive chef is the commander of the kitchen; he coordinates the kitchen staff and manages the preparation of meals. An executive chef's duties include

More information

Understanding Stock and Inventory Control

Understanding Stock and Inventory Control Understanding Stock and Inventory Control Stock control, otherwise known as inventory control, is used to show how much stock you have at any one time, and how you keep track of it. It applies to every

More information

Cook for Kids: SchoolFood Kitchen Training Program

Cook for Kids: SchoolFood Kitchen Training Program Cook for Kids: SchoolFood Kitchen Training Program Wellness in the Schools (WITS) provides the Cook for Kids program to approximately 60 NYCDOE public schools. As part of this program WITS Chefs assist

More information

DENTAL INVENTORY CONTROL. Nashville Area Practice Management Series Cathy Hollister, RDH, MSPH, PhD Dental Support Center

DENTAL INVENTORY CONTROL. Nashville Area Practice Management Series Cathy Hollister, RDH, MSPH, PhD Dental Support Center DENTAL INVENTORY CONTROL Nashville Area Practice Management Series Cathy Hollister, RDH, MSPH, PhD Dental Support Center How Much? Dental supplies should comprise approximately 6%-12% of total operating

More information

Careers. Stock Control at McDonald s. Introduction. The Stock Management Problem. at McDonald s

Careers. Stock Control at McDonald s. Introduction. The Stock Management Problem. at McDonald s at McDonald s Careers at McDonald s All businesses face challenges on a daily basis. One of the major challenges facing McDonald s is managing stock. Stock management involves creating a balance between

More information

Number of methodological EUPA_LO_005_M_006. Work Area Code and Title 2.1 OFFICE PROCEDURES. Learning Outcome Number and Title

Number of methodological EUPA_LO_005_M_006. Work Area Code and Title 2.1 OFFICE PROCEDURES. Learning Outcome Number and Title Number of methodological EUPA_LO_005_M_006 Tool Work Area Code and Title 2.1 OFFICE PROCEDURES Unit Code and Title 2.1.2 Handle the stock Learning Outcome Number and Title LO005: Be able to maintain the

More information

Competence Certificate in Purchasing & Supply Chain Management

Competence Certificate in Purchasing & Supply Chain Management Competence Certificate in Purchasing & Supply Chain Management Welcome to the Competence Certificate in Purchasing & Supply Chain Management s programme. We hope you find the course interesting and that

More information

Accounting for Materials

Accounting for Materials Accounting for Materials The correct valuation of inventory is of the utmost importance because it has a direct impact on profit. You may be aware from your Financial Accounting Studies that under IAS

More information

Definition of Supplies & Equipment

Definition of Supplies & Equipment University of Nebraska Medical Center Clinical Laboratory Science Program Nebraska Methodist Hospital Medical Technology Program CLS 431 - Clinical Laboratory Management II Materials Management Note: The

More information

Inventory Decision-Making

Inventory Decision-Making Management Accounting 195 Inventory Decision-Making To be successful, most businesses other than service businesses are required to carry inventory. In these businesses, good management of inventory is

More information

Abstract: Why inventory exists. Types of inventory. This is sequel to OM 601 assignment.

Abstract: Why inventory exists. Types of inventory. This is sequel to OM 601 assignment. Abstract: This is sequel to OM 601 assignment. The reason for this assignment is to improve overall competitiveness of Hefley Finland by focusing on inventory management. In this assignment I first clarify

More information

tutor2u Stock Control The Importance of Managing Stocks AS & A2 Business Studies PowerPoint Presentations 2005

tutor2u Stock Control The Importance of Managing Stocks AS & A2 Business Studies PowerPoint Presentations 2005 Stock Control The Importance of Managing Stocks AS & A2 Business Studies PowerPoint Presentations 2005 What Are Stocks? Three main categories of stocks Raw Materials Work in Progress Finished Goods Types

More information

Inventory Management, Just-in-Time, and Backflush Costing

Inventory Management, Just-in-Time, and Backflush Costing Inventory Management, Just-in-Time, and Backflush Costing Inventory Management in Retail Organizations Inventory Management is planning coordinating controlling activities related to the flow of inventory

More information

MANAGEMENT OF OPERATIONS STOCK MANAGEMENT

MANAGEMENT OF OPERATIONS STOCK MANAGEMENT MANAGEMENT OF OPERATIONS STOCK MANAGEMENT LEARNING INTENTIONS AND SUCCESS CRITERIA LEARNING INTENTIONS: I understand what is involved in effective stock management. SUCCESS CRITERIA: I can describe the

More information

Sterile Processing University, LLC MODULE 25: INVENTORY CONTROL & MANAGEMENT [Ambulatory Surgery]

Sterile Processing University, LLC MODULE 25: INVENTORY CONTROL & MANAGEMENT [Ambulatory Surgery] Sterile Processing University, LLC MODULE 25: INVENTORY CONTROL & MANAGEMENT [Ambulatory Surgery] Copyright Sterile Processing University, LLC 2012 All Rights Reserved. This material may not be copied

More information

EXECUTIVE CHEF. Job Title: Executive Chef

EXECUTIVE CHEF. Job Title: Executive Chef EXECUTIVE CHEF Executive Chef A hotel To provide an efficient and cost effective food service to the establishment. General Manager All subordinate kitchen staff All other heads of department Flexible

More information

Inventory Control Subject to Known Demand

Inventory Control Subject to Known Demand Production and Operation Managements Inventory Control Subject to Known Demand Prof. JIANG Zhibin Department of Industrial Engineering & Management Shanghai Jiao Tong University Contents Introduction Types

More information

RELATIONSHIP BETWEEN INVENTORY MANAGEMENT AND INDUSTRIES BECOMING SICK, ESPECIALLY IN THIRD WORLD COUNTRIES

RELATIONSHIP BETWEEN INVENTORY MANAGEMENT AND INDUSTRIES BECOMING SICK, ESPECIALLY IN THIRD WORLD COUNTRIES Relationship between inventory management and industries becoming sick, especially in third world countries 7 RELATIONSHIP BETWEEN INVENTORY MANAGEMENT AND INDUSTRIES BECOMING SICK, ESPECIALLY IN THIRD

More information

In this training module you will learn about the Maximo Asset Management version 7.5 inventory reorder calculation process.

In this training module you will learn about the Maximo Asset Management version 7.5 inventory reorder calculation process. In this training module you will learn about the Maximo Asset Management version 7.5 inventory reorder calculation process. Page 1 of 12 When you complete this training module, you are able to perform

More information

Food Waste Reduction Good Practice Guide for Food and Beverage Sector

Food Waste Reduction Good Practice Guide for Food and Beverage Sector Food Waste Reduction Good Practice Guide for Food and Beverage Sector Food Wise Hong Kong Campaign May 2013 Introduction Hong Kong s waste problem is a worry. Every day each person dumps about 1.27 kg

More information

MATERIAL MANAGEMENT INVENTORY CONTROL & PATIENT SAFETY DR RS GANGULI HOSPITAL MANAGER CNBC

MATERIAL MANAGEMENT INVENTORY CONTROL & PATIENT SAFETY DR RS GANGULI HOSPITAL MANAGER CNBC MATERIAL MANAGEMENT INVENTORY CONTROL & PATIENT SAFETY DR RS GANGULI HOSPITAL MANAGER CNBC AIM OF MATERIAL MANAGEMENT 1. The Right quality 2.The Right quantity of supplies 3. At the Right time 4. At the

More information

Chapter 6. Inventory Control Models

Chapter 6. Inventory Control Models Chapter 6 Inventory Control Models Learning Objectives After completing this chapter, students will be able to: 1. Understand the importance of inventory control and ABC analysis. 2. Use the economic order

More information

Internship Program. Food & Beverage Department

Internship Program. Food & Beverage Department Internship Program Food & Beverage Department This program is designed for students that would like to get practical experience in F&B operations. Students will be exposed to various positions in Restaurants

More information

Project and Production Management Prof. Arun Kanda Department of Mechanical Engineering Indian Institute of Technology, Delhi

Project and Production Management Prof. Arun Kanda Department of Mechanical Engineering Indian Institute of Technology, Delhi Project and Production Management Prof. Arun Kanda Department of Mechanical Engineering Indian Institute of Technology, Delhi Lecture - 38 Basic Inventory Principles In today s lecture we are going to

More information

Chapter 13: Marketing Channels and Supply-Chain Management

Chapter 13: Marketing Channels and Supply-Chain Management Chapter 13: Marketing Channels and Supply-Chain Management Pride/Ferrell Foundations of Marketing Fourth Edition Prepared by Milton Pressley University of New Orleans Objectives 1. Describe the foundations

More information

Teaching Manual-Operation Management. Gunadarma University. Week : 9 Subject : INVENTORY MANAGEMENT Content :

Teaching Manual-Operation Management. Gunadarma University. Week : 9 Subject : INVENTORY MANAGEMENT Content : Week : 9 Subject : INVENTORY MANAGEMENT Content : WHY INVENTORY a. One of the most expensive assets of many companies representing as much as 50% of total invested capital b. Operations managers must balance

More information

Review of IDR Inventory Control Processes and Implementation of Procedures to Minimize Future Discrepancies. Submitted by Karen Young

Review of IDR Inventory Control Processes and Implementation of Procedures to Minimize Future Discrepancies. Submitted by Karen Young Review of IDR Inventory Control Processes and Implementation of Procedures to Minimize Future Discrepancies Submitted by Karen Young A case study presentation from the ASQ Healthcare Division: www.asq.org/health.

More information

(DBHM 31) 1. Write about the standard portion sizes in hotels. 2. What factors are influencing F & B standards?

(DBHM 31) 1. Write about the standard portion sizes in hotels. 2. What factors are influencing F & B standards? Paper I FOOD AND BEVERAGE MANAGEMENT (DBHM 31) 1. Write about the standard portion sizes in hotels. 2. What factors are influencing F & B standards? 3. How do you select a supplier for a hotel of your

More information

HISTORY AND INTRODUCTION

HISTORY AND INTRODUCTION HISTORY AND INTRODUCTION I 1 Introduction The APICS dictionary defines the term supply chain as either the processes from the initial raw materials to the ultimate consumption of the finished product linking

More information

講 師 : 周 世 玉 Shihyu Chou

講 師 : 周 世 玉 Shihyu Chou 講 師 : 周 世 玉 Shihyu Chou Logistics involves the following activities: sourcing and purchasing inputs, managing inventory, maintaining warehouses, and arranging transportation and delivery. There are three

More information

Moving Parts Planning Forward

Moving Parts Planning Forward 2013 Moving Parts Planning Forward In less than six months, we ve reduced our inventory by more than $75,000 and expect to reduce it by $150,000 by the end of the first year. Valogix e-report Series www.valogixinventoryplanning.com

More information

FINA351, Managerial Finance - Chapter 16 Notes WORKING CAPITAL. Involves current assets and liabilities in the operating cycle

FINA351, Managerial Finance - Chapter 16 Notes WORKING CAPITAL. Involves current assets and liabilities in the operating cycle FINA351, Managerial Finance - Chapter 16 Notes WORKING CAPITAL Involves current assets and liabilities in the operating cycle Is important for every business major to understand because: (1) it is where

More information

AIM OF MATERIAL MANAGEMENT

AIM OF MATERIAL MANAGEMENT MATERIAL MANAGEMENT Definition It is concerned with planning, organizing and controlling the flow of materials from their initial purchase through internal operations to the service point through distribution.

More information

Operations Management

Operations Management 11-1 Inventory Management 11-2 Inventory Management Operations Management William J. Stevenson CHAPTER 11 Inventory Management 8 th edition McGraw-Hill/Irwin Operations Management, Eighth Edition, by William

More information

Cost Analysis for Inventory Valuations

Cost Analysis for Inventory Valuations Session 02 Cost Analysis for Inventory Valuations Programme : Executive Diploma in Business & Accounting (EDBA 2014) Course : Cost Analysis in Business Lecturer : Mr. Asanka Ranasinghe BBA (Finance), ACMA,

More information

FINANCIAL MANAGEMENT For M.Com /B.Com Part A Question & Answers INTRODUCTION TO FINANCIAL MANAGEMENT 1. What is financial management?

FINANCIAL MANAGEMENT For M.Com /B.Com Part A Question & Answers INTRODUCTION TO FINANCIAL MANAGEMENT 1. What is financial management? FINANCIAL MANAGEMENT For M.Com /B.Com Part A Question & Answers INTRODUCTION TO FINANCIAL MANAGEMENT 1. What is financial management? It is the application of planning and control functions of the finance

More information

By: ATEEKH UR REHMAN 12-1

By: ATEEKH UR REHMAN 12-1 12 Inventory Management By: ATEEKH UR REHMAN 12-1 Inventory Management The objective of inventory management is to strike a balance between inventory investment and customer service 12-2 Importance of

More information

List of Tables. Table No Title Page No 2.1 Market Segments in Indian retail 25

List of Tables. Table No Title Page No 2.1 Market Segments in Indian retail 25 List of Tables Table No Title Page No 2.1 Market Segments in Indian retail 25 2.2 Organized retail penetration levels 25 3.1 Pattern of control in ABC analysis 58 3.2 Various selective inventory control

More information

Chapter 4 MANAGEMENT OF WORKING CAPITAL (2) INVENTORY

Chapter 4 MANAGEMENT OF WORKING CAPITAL (2) INVENTORY September-December 2016 Examinations ACCA F9 25 Chapter 4 MANAGEMENT OF WORKING CAPITAL (2) INVENTORY 1. Introduction The purpose of this chapter is to examine approaches to managing inventory efficiently.

More information

Axis Purchasing Inventory Control Basics for Foodservice

Axis Purchasing Inventory Control Basics for Foodservice 2014 Axis Purchasing Inventory Control Basics for Foodservice White Paper Inventory Control Basics for Foodservice Axis Purchasing Headquarters - (703) 310-7607 www.axispurchasing.com I nventory Control

More information

WORKING CAPITAL MANAGEMENT

WORKING CAPITAL MANAGEMENT CHAPTER 9 WORKING CAPITAL MANAGEMENT Working capital is the long term fund required to run the day to day operations of the business. The company starts with cash. It buys raw materials, employs staff

More information

Stop the Chaos & Start Kanban!

Stop the Chaos & Start Kanban! PETER PAUL ELECTRONICS Stop the Chaos & Start Kanban! Whitepaper By Danielle George North 1/31/2013 COPYRIGHT 2012 PETER PAUL ELECTRONICS. NEW BRITAIN, CT Contents Kanban... 2 Kanban Defined... 2 Traditional

More information

INVENTORY RISK MANAGEMENT. By: John Kemuel C. Ricofuerto Sales Consultant Iris N. Lumbao Solutions Delivery Manager

INVENTORY RISK MANAGEMENT. By: John Kemuel C. Ricofuerto Sales Consultant Iris N. Lumbao Solutions Delivery Manager INVENTORY RISK MANAGEMENT By: John Kemuel C. Ricofuerto Sales Consultant Iris N. Lumbao Solutions Delivery Manager AGENDA: I. What Is Inventory Management II. Why Inventory Management III. What are the

More information

Inventory costs Inventory costs can be divided into different categories based on the cost nature:

Inventory costs Inventory costs can be divided into different categories based on the cost nature: Inventory Management (Relevant to PBE Paper II Management Accounting and Finance) Eric Y.W. Leung, CUHK Business School, The Chinese University of Hong Kong In Paper II, students are expected to have comprehensive

More information

Understanding Financial Management: A Practical Guide Guideline Answers to the Concept Check Questions

Understanding Financial Management: A Practical Guide Guideline Answers to the Concept Check Questions Understanding Financial Management: A Practical Guide Guideline Answers to the Concept Check Questions Chapter 6 Working Capital Management Concept Check 6.1 1. What is the meaning of the terms working

More information

Chapter 13. Working Capital Management

Chapter 13. Working Capital Management Chapter 13 Working Capital Management Learning Objectives 1. Model the cash conversion cycle and explain its components. 2. Understand why the timing of accounts receivable is important and explain the

More information

Inventory Control Models

Inventory Control Models Chapter 12 Inventory Control Models Learning Objectives After completing this chapter, students will be able to: 1. Understand the importance of inventory control. 2. Use inventory control models to determine

More information

Inventory Management

Inventory Management Inventory Management Uninterrupted supply of drugs is the most important factor for success of many programmes. And to achieve uninterrupted supply there is need of proper inventory control system. The

More information

A New Framework for Safety Stock Management

A New Framework for Safety Stock Management Cognizant 20-20 Insights A New Framework for Safety Stock Management Executive Summary In today s dynamic global economy, with highly fluctuating demand for products, inventory management has become even

More information

Practice Test. 1. Which of the following statements is true? After touching raw ground beef, it is important to:

Practice Test. 1. Which of the following statements is true? After touching raw ground beef, it is important to: Practice Test This test shows you what you might see on the food handler certification test. You can use the book to look up the answers. The certification test is made up of 32 questions and you will

More information

Does your organisation have stocks of materials or equipment for you and your team to use?

Does your organisation have stocks of materials or equipment for you and your team to use? Controlling stock Does your organisation have stocks of materials or equipment for you and your team to use? Is there any system for controlling how much you have or when it is re-ordered? Controlling

More information

Glossary of Inventory Management Terms

Glossary of Inventory Management Terms Glossary of Inventory Management Terms ABC analysis also called Pareto analysis or the rule of 80/20, is a way of categorizing inventory items into different types depending on value and use Aggregate

More information

Business Basics: Inventory Management Manufacturing/Services

Business Basics: Inventory Management Manufacturing/Services Business Basics: Inventory Management Manufacturing/Services 1. Introduction The primary concern of inventory management is to maintain raw material and finished goods inventories at levels that are not

More information

The Nature, Elements and Importance of Working Capital

The Nature, Elements and Importance of Working Capital C. WORKING CAPITAL MANAGEMENT 1. The nature, elements and importance of working capital 2. Management of inventories, accounts receivable, accounts payable and cash 3. Determining working capital needs

More information

Dining Facility Inventory Management

Dining Facility Inventory Management IAW DA Pam 30-22, Operation Procedures for The Army Food Program, Paragraph 3-24. a. Inventory criteria. Dining facility inventory levels will be maintained using the following criteria: (1) The total

More information

Journal of Agriculture and Social Research (JASR) Vol. 12, No. 1, 2012

Journal of Agriculture and Social Research (JASR) Vol. 12, No. 1, 2012 CONTRIBUTION OF STOCK CONTROL PRACTICES TO THE SUSTAINABILITY OF HOSPITALITY ESTABLISHMENTS IN ABIA STATE, NIGERIA ENEMUO,.O. B AND UWAZURUIKE. J Department of Hotel Management and Tourism Michael Okpara

More information

Contents. Before you begin. Introduction: Use inventory systems to organise stock control 1

Contents. Before you begin. Introduction: Use inventory systems to organise stock control 1 Contents Contents Before you begin v Introduction: Use inventory systems to organise stock control 1 Element 1: Identifying inventory and stock control systems 3 Section 1.1: Identifying inventory and

More information

SHOP SMART, STORE SAFE

SHOP SMART, STORE SAFE SHOP SMART, STORE SAFE Introduction This lesson gives an older adult audience an opportunity to focus on making the most of their food budgets by sharing strategies for healthy shopping on a budget and

More information

Inventory Management done properly. www.brightpearl.com

Inventory Management done properly. www.brightpearl.com Inventory Management done properly Whats inside Even if you don t carry the inventory in your own warehouse, tracking the quantity and cost value of the products you are selling is essential. www.brightpearl.com

More information

Food delivery & storage

Food delivery & storage screen 1 Food delivery & storage 7. Rubbish bags in the way of deliveries This screen shows a delivery scene with a number of potential hazards to food safety. As a starting point students are encouraged

More information

Job Fair for Genting Hotel Jurong

Job Fair for Genting Hotel Jurong 1 Job Fair for Genting Hotel Jurong 10am to 4pm 22 & 23 Jan 2015 Thursday & Friday // ORGANISER DETAILS (Employment and Employability Institute) is the leading organisation to create solution for better

More information

INVENTORY MANAGEMENT. 1. Raw Materials (including component parts) 2. Work-In-Process 3. Maintenance/Repair/Operating Supply (MRO) 4.

INVENTORY MANAGEMENT. 1. Raw Materials (including component parts) 2. Work-In-Process 3. Maintenance/Repair/Operating Supply (MRO) 4. INVENTORY MANAGEMENT Inventory is a stock of materials and products used to facilitate production or to satisfy customer demand. Types of inventory include: 1. Raw Materials (including component parts)

More information

Chapter 9 Managing Inventory in the Supply Chain

Chapter 9 Managing Inventory in the Supply Chain Chapter 9 Managing Inventory in the Supply Chain Inventory is an asset on the balance sheet and inventory cost is an expense on the income statement. Inventories impacts return on asset (ROA) Inventory

More information

Inventory basics. 35A00210 Operations Management. Lecture 12 Inventory management. Why do companies use inventories? Think about a Siwa store

Inventory basics. 35A00210 Operations Management. Lecture 12 Inventory management. Why do companies use inventories? Think about a Siwa store 35A00210 Operations Management Lecture 12 Inventory management Lecture 12 Inventory management Inventory basics Inventory basics Pros and cons of inventory Inventory numbers Inventory management in practice

More information

Operations Management Part 12 Purchasing and supplier management PROF. NAKO STEFANOV, DR. HABIL.

Operations Management Part 12 Purchasing and supplier management PROF. NAKO STEFANOV, DR. HABIL. Operations Management Part 12 Purchasing and supplier management PROF. NAKO STEFANOV, DR. HABIL. Introduction basic terms Supply management describes the methods and processes of modern corporate or institutional

More information

Techniques of Inventory Control Indian Association of Preventive and Social Medicine Gujarat Chapter

Techniques of Inventory Control Indian Association of Preventive and Social Medicine Gujarat Chapter Module 5: Chapter 3 Techniques of Inventory Control Indian Association of Preventive and Social Medicine Gujarat Chapter TECHNIQUES OF INVENTORY CONTROL Learning objectives: At the end of this chapter

More information

Helping Clinicians Get Out of the Supply Room and Back to Their Patients. How Medical West Hospital transformed its supply chain

Helping Clinicians Get Out of the Supply Room and Back to Their Patients. How Medical West Hospital transformed its supply chain Helping Clinicians Get Out of the Supply Room and Back to Their Patients How Medical West Hospital transformed its supply chain Helping Clinicians Get Out of the Supply Room and Back to Their Patients

More information

Situated in the picturesque County Durham area this hotel provides the highest quality food and service.

Situated in the picturesque County Durham area this hotel provides the highest quality food and service. Situated in the picturesque County Durham area this hotel provides the highest quality food and service. As a privately owned four star hotel Ramside Hall Hotel is awarded for its excellent food and atmosphere.

More information

Business Basics: Inventory Management Wholesale/Retail

Business Basics: Inventory Management Wholesale/Retail Business Basics: Inventory Management Wholesale/Retail 1. Introduction You are in trouble if you have to keep telling customers, "I'm sorry we're out of that size. May we order it for you?" Even though

More information

Alessandro Anzalone, Ph.D. Hillsborough Community College, Brandon Campus

Alessandro Anzalone, Ph.D. Hillsborough Community College, Brandon Campus Alessandro Anzalone, Ph.D. Hillsborough Community College, Brandon Campus 1. Introduction 2. Basic Concepts of Inventory 3. Categories of Inventory 4. The Basic Inventory Lot Sizing Model Economic Order

More information

Modeling and Optimization of an Industrial Inventory Management System

Modeling and Optimization of an Industrial Inventory Management System Modeling and Optimization of an Industrial Inventory Management System Design Team Katia Lisboa, Jaime Bonifasi, Cristina Cromeyer, Frederick Stewart Design Advisor Prof. Abe Zeid Sponsor Barry Controls

More information

JOB DESCRIPTION - FINANCIAL CONTROLLER

JOB DESCRIPTION - FINANCIAL CONTROLLER JOB DESCRIPTION - FINANCIAL CONTROLLER Title: Rank: Department: Reports to: Financial controller Officer 3 stripes Hotel Hotel Director (operational) Head office (financial) Direct subordinate: Cabin:

More information

Small Lot Production. Chapter 5

Small Lot Production. Chapter 5 Small Lot Production Chapter 5 1 Lot Size Basics Intuition leads many to believe we should manufacture products in large lots. - Save on setup time - Save on production costs Costs associated with Lots

More information

Sage ERP Solutions. Managing Business Risk in the Food and Beverage Industry. Prepared exclusively for Sage by Cambashi, Inc. www.cambashi.

Sage ERP Solutions. Managing Business Risk in the Food and Beverage Industry. Prepared exclusively for Sage by Cambashi, Inc. www.cambashi. Managing Business Risk in the Food and Beverage Industry Prepared exclusively for Sage by Cambashi, Inc. www.cambashi.com Table of Contents Introduction...3 One-Stop Solutions for Category Leadership...

More information

A Cross-Functional View of Inventory Management, Why Collaboration among Marketing, Finance/Accounting and Operations Management is Necessary

A Cross-Functional View of Inventory Management, Why Collaboration among Marketing, Finance/Accounting and Operations Management is Necessary A Cross-Functional View of Inventory Management, Why Collaboration among Marketing, Finance/Accounting and Operations Management is Necessary Richard E. Crandall, Appalachian State University, John A.

More information

============================================================

============================================================ UNIT-3 ============================================================ UNIVERSITY SYLLABUS Inventory Control: Inventory, cost, Deterministic models, Introduction to supply chain management. ============================================================

More information

COST AND MANAGEMENT ACCOUNTING

COST AND MANAGEMENT ACCOUNTING EXECUTIVE PROGRAMME COST AND MANAGEMENT ACCOUNTING SAMPLE TEST PAPER (This test paper is for practice and self study only and not to be sent to the institute) Time allowed: 3 hours Maximum marks : 100

More information

Best Practice Approaches to Improving Clinical Supply Chain Management. Matthew Do Client Development Lead Almac Pharmaceutical Services

Best Practice Approaches to Improving Clinical Supply Chain Management. Matthew Do Client Development Lead Almac Pharmaceutical Services Best Practice Approaches to Improving Clinical Supply Chain Management Matthew Do Client Development Lead Almac Pharmaceutical Services A variety of challenges complicate trial supply management Multiple

More information

WWW.WIPRO.COM THE INTERNET OF THINGS. HARMONIZING IoT FOR RETAIL. Kuru Subramaniam

WWW.WIPRO.COM THE INTERNET OF THINGS. HARMONIZING IoT FOR RETAIL. Kuru Subramaniam WWW.WIPRO.COM THE INTERNET OF THINGS HARMONIZING IoT FOR RETAIL Kuru Subramaniam Table of contents 01 Abstract 01 Introduction 02 Where Are We Headed? 02 What Does IoT Mean for Retailers? 03 Getting the

More information

Improving Inbound Logistics: Summary

Improving Inbound Logistics: Summary Semi-finished goods Improving Inbound Logistics: Summary Author: C.M. van Baar As a result of the shift in focus from outbound logistics, which includes the flows to the customers, to inbound logistics,

More information

Lodging properties are constantly

Lodging properties are constantly StEp-by-step: Easing A Lodging Transition A collection of hotel transition checklists gathered by the HFTP Research Institute By Tanya Venegas Lodging properties are constantly changing hands whether it

More information

Chapter 12 Inventory Control and Management

Chapter 12 Inventory Control and Management Chapter 12 Inventory Control and Management Learning Outcomes Describe the functions and costs of an inventory system. Determine the order quantity and Economic Order Quantity. Determine the reorder point

More information

June 2014 exam. (4CW) SME Cash and Working Capital. Instructions to students:

June 2014 exam. (4CW) SME Cash and Working Capital. Instructions to students: 1 June 2014 exam (4CW) SME Cash and Working Capital Instructions to students: 1. Time allowed is 3 hours and 10 minutes, which includes 10 minutes reading time. 2. This is a closed book examination. 3.

More information

Exemplar for Internal Achievement Standard. Accounting Level 2

Exemplar for Internal Achievement Standard. Accounting Level 2 Exemplar for internal assessment resource Accounting for Achievement Standard 9386 Exemplar for Internal Achievement Standard Accounting Level This exemplar supports assessment against: Achievement Standard

More information

FOOD & BEVERAGE DEPARTMENT Job Description

FOOD & BEVERAGE DEPARTMENT Job Description Suites Server Reports to: Suites Coordinator A Suites Server will endeavour to provide the highest level of customer service to our guests at all times. Beverages, both alcoholic and non-alcoholic in nature,

More information

Food Waste Reduction Good Practice Guide for Hotel Sector

Food Waste Reduction Good Practice Guide for Hotel Sector Food Waste Reduction Good Practice Guide for Hotel Sector Food Wise Hong Kong Campaign May 2013 Introduction Hong Kong s waste problem is a worry. Every day, each person dumps about 1.27 kg of municipal

More information

EFFECT OF INVENTORY CONTROL ON INDUSTRY PERFORMANCE A-CASE STUDY

EFFECT OF INVENTORY CONTROL ON INDUSTRY PERFORMANCE A-CASE STUDY EFFECT OF INVENTORY CONTROL ON INDUSTRY PERFORMANCE A-CASE STUDY Vishal Thakur 1, Ashish kumar 2, Ashutosh 3 1 (Total Quality Engineering and management, PEC, India) 2 (Total Quality Engineering and management,

More information

Module 10: Inventory Managing Stocks at the HIV Rapid Testing Site

Module 10: Inventory Managing Stocks at the HIV Rapid Testing Site Module 10: Inventory Managing Stocks at the HIV Rapid Testing Site Purpose To equip the participants with necessary knowledge so they can properly manage the stocks at the rapid testing sites. Pre-requisite

More information

Economic Ordering Quantities: A Practical Cost Reduction Strategy for Inventory Management

Economic Ordering Quantities: A Practical Cost Reduction Strategy for Inventory Management Economic Ordering Quantities: A Practical Cost Reduction Strategy for Inventory Management By Todd Duell Abstract Inventory management is an important concern for all managers in all types of businesses.

More information

CHAPTER:5 INVENTORY CONTROL. BY Mrs. K.SHAILAJA., M. PHARM., LECTURER DEPT OF PHARMACY PRACTICE, SRM COLLEGE OF PHARMACY

CHAPTER:5 INVENTORY CONTROL. BY Mrs. K.SHAILAJA., M. PHARM., LECTURER DEPT OF PHARMACY PRACTICE, SRM COLLEGE OF PHARMACY CHAPTER:5 INVENTORY CONTROL BY Mrs. K.SHAILAJA., M. PHARM., LECTURER DEPT OF PHARMACY PRACTICE, SRM COLLEGE OF PHARMACY OBJECTIVES Inadequate control of inventories can result in both under and overstocking

More information

Purchasing LESSON 2. What a Buyer Does

Purchasing LESSON 2. What a Buyer Does Purchasing LESSON 2 Main Idea Purchasing inventory for a store is an important and complicated job. To be successful, a store must have inventory available for its customers to buy. That inventory must

More information

Inventory Management - A Teaching Note

Inventory Management - A Teaching Note Inventory Management - A Teaching Note Sundaravalli Narayanaswami W.P. No.2014-09-01 September 2014 INDIAN INSTITUTE OF MANAGEMENT AHMEDABAD-380 015 INDIA Inventory Management - A Teaching Note Sundaravalli

More information

Choosing a Major in the Harrison College of Business

Choosing a Major in the Harrison College of Business Choosing a Major in the Harrison College of Business Considerable information for this document was provided by the Bureau of Labor Statistics, U.S. Department of Labor, Occupational Outlook Handbook,

More information

The Training Material on Supply Chain Collaboration & Logistics Solutions has been produced under Project Sustainable Human Resource Development in

The Training Material on Supply Chain Collaboration & Logistics Solutions has been produced under Project Sustainable Human Resource Development in The Training Material on Supply Chain Collaboration & Logistics Solutions has been produced under Project Sustainable Human Resource Development in Logistic Services for ASEAN Member States with the support

More information

Supply Chain Leaders Understanding and Improving Supply Chain Performance Where It Counts

Supply Chain Leaders Understanding and Improving Supply Chain Performance Where It Counts Leaders Understanding and Improving Performance Where It Counts What is the Leaders Programme? Leaders is an action-oriented, practical programme which identifies the most vital supply chain improvements

More information

Basics of inventory control

Basics of inventory control 35A00210 Operations Management Lecture 13 control Lecture 13 control Basics of inventory control models continuous review periodic review other models Basics of inventory control control is boring but

More information

Approved by Commissioner: LATEST REVISION: June 28, 2013

Approved by Commissioner: LATEST REVISION: June 28, 2013 POLICY TITLE: FOOD SERVICE MANAGEMENT, GENERAL PAGE 1 OF 13 POLICY NUMBER: 11.6 CHAPTER 11: FOOD SERVICE STATE of MAINE DEPARTMENT OF CORRECTIONS Division of Juvenile Services Approved by Commissioner:

More information

Items wasted, taken for personal consumption, or given away X Ingredient cost for these items = Adjustment Total

Items wasted, taken for personal consumption, or given away X Ingredient cost for these items = Adjustment Total Inventory Control One of the modules available through the Vital Link back office system is Inventory Control. This section of the manual will document the reason for using Inventory Control, the setup

More information

THE INSTITUTE OF CHARTERED ACCOUNTANTS, GHANA NOVEMBER 2015 PROFESSIONAL EXAMINATIONS MANAGEMENT ACCOUNTING (2.2) EXAMINERS GENERAL COMMENTS

THE INSTITUTE OF CHARTERED ACCOUNTANTS, GHANA NOVEMBER 2015 PROFESSIONAL EXAMINATIONS MANAGEMENT ACCOUNTING (2.2) EXAMINERS GENERAL COMMENTS THE INSTITUTE OF CHARTERED ACCOUNTANTS, GHANA NOVEMBER 2015 PROFESSIONAL EXAMINATIONS MANAGEMENT ACCOUNTING (2.2) EXAMINERS GENERAL COMMENTS GENERAL PERFORMANCE In general, the performance of students

More information